10-QPeriod: Q1 FY2025

ALLSTATE CORP Quarterly Report for Q1 Ended Mar 31, 2025

Filed April 30, 2025For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

The Allstate Corporation reported net income applicable to common shareholders of $566 million, or $2.11 per diluted share, for the first quarter of 2025. This represents a significant decrease from $1,189 million, or $4.46 per diluted share, in the same period of the prior year. The decline was primarily driven by a substantial increase in catastrophe losses, which rose to $2.20 billion from $731 million year-over-year, and higher realized capital losses on investments. Despite the lower net income, total revenues saw an increase of 7.8% to $16.45 billion, boosted by premium rate increases and a higher number of homeowners policies in force. Allstate Protection underwriting income was notably lower due to these catastrophe losses, though premiums written across property-liability segments showed an 8.5% increase. The company also continues to execute on its corporate strategy, including progress on planned dispositions of certain health and benefits businesses, which are expected to result in significant gains upon closing. Allstate shareholders' equity strengthened, and book value per diluted common share increased, reflecting the company's ongoing focus on shareholder value despite the near-term impact of severe weather events.

Financial Highlights

33 data points
Beta

Revenue

$16.45B

Net Income

$595.00M

3.6% Net Margin

EPS (Diluted)

$2.11

Total Assets

$115.16B

Cash & Equivalents

$840.00M

Free Cash Flow

$1.87B

Financial Statements
Beta
Revenue$16.45B
Net Income$595.00M
EPS (Basic)$2.13
EPS (Diluted)$2.11
Shares Outstanding (Basic)265.30M
Shares Outstanding (Diluted)268.80M

Key Highlights

  • 1Net income applicable to common shareholders decreased by 52.4% to $566 million in Q1 2025 compared to $1,189 million in Q1 2024.
  • 2Total revenues increased by 7.8% to $16.45 billion in Q1 2025, driven by premium rate increases and higher homeowners policies in force.
  • 3Catastrophe losses significantly increased to $2.20 billion in Q1 2025, up from $731 million in Q1 2024.
  • 4Allstate Protection underwriting income decreased significantly to $364 million in Q1 2025 from $903 million in Q1 2024, primarily due to higher catastrophe losses.
  • 5Premiums written across property-liability segments increased by 8.5% to $14.30 billion in Q1 2025.
  • 6The company expects to record significant gains from the dispositions of its employer voluntary benefits business (closed April 1, 2025) and group health business (expected to close in 2025).
  • 7Allstate shareholders' equity increased to $22.06 billion as of March 31, 2025.

Frequently Asked Questions

The primary driver of the decrease in net income for the first quarter of 2025 was a substantial increase in catastrophe losses, which rose to $2.20 billion from $731 million in the prior year's comparable period. Higher realized capital losses on investments also contributed to the decline.

The Allstate Protection segment's underwriting income decreased significantly to $364 million in the first quarter of 2025, down from $903 million in the first quarter of 2024. This was primarily due to the impact of higher catastrophe losses. However, premiums written in the property-liability segments increased by 8.5% to $14.30 billion, reflecting higher auto and homeowners insurance premiums and an increase in homeowners policies in force.

Allstate has made progress on its planned divestitures. The sale of its employer voluntary benefits business closed on April 1, 2025, and is expected to result in a gain of approximately $625 million in the second quarter of 2025. The company also has an agreement to sell its group health business, which is expected to close in 2025 and result in an anticipated gain of approximately $450 million.

The company's investment portfolio generated net investment income of $854 million in the first quarter of 2025, an increase from $764 million in the prior year, driven by higher market-based investment results and higher investment balances. However, net gains (losses) on investments and derivatives were $(349) million in Q1 2025, compared to $(164) million in Q1 2024, reflecting losses on sales of fixed income securities, valuation losses on equity investments, and losses on variable interests in Reciprocal Exchanges.